The Barometer, Q1 2008

Preliminary figures in the Q1 2008 Unquote Barometer published by Incisive Media and sponsored by Candover reveal the ongoing effects of the credit crisis on the European buyout market. The value of buyouts during Q1 fell by 32% from Q4 to just €19bn. This was the third consecutive decline, and contrasts sharply with the same quarter a year earlier, when €52 billion of deals were recorded.

Only three completed deals were valued at more than €1 billion, and this has obviously been a major factor in the decrease in value.   The UK continued to outperform other regions in Europe, maintaining its position as the largest market in terms of both volume and value, accounting for 11 out of the 20 largest buyouts and 50% of the total buyouts by value. Part of the UK’s resilience can be explained by a surge in activity at the end of march as many sales were rushed through to beat the deadline for the changes to capital gains tax legislation which came into effect in April.

2008 will be a quieter year than of late, but the private equity market is a resilient one, and history has shown that a downturn on the markets can prove to be a good time for investing.

The Unquote Barometer is published by Incisive Media and sponsored by Candover. It is a comprehensive review of the state of the private equity market across Europe